With Chinese companies getting cash calls from the bank they had been selling the collateral they put up, copper and iron-ore, you probably recall the beating copper took recently right after Chaori solar was the first Chinese company to default, the banks that were still flush with cash cut off funding for all new deals and put out cash calls on existing loans, thus the sell-off in commodities, specifically copper and iron ore as these companies met the cash calls by selling their tangible collateral.
I though JJC might make a nice bounce trade and it still might, but the performance is just not up to par, there are a lot better places to put the assets to work in my view so why maintain the position as well as what looks like some near term risk?
A 3% gain is just not worth the risk.
Near term it looks like Copper is going to pullback a bit, this may be forming a larger base and if so, then I'll take at a few other ways of playing copper that have better profit potential.
The longer term 30 min chart looks like a "W" base is likely, but the shorter term chart above makes it look like a move to the lower end of what would be the "W"'s support is at hand, time to move out and raise some dry powder.
No comments:
Post a Comment